Colorado is a US state that is known for being one of the most scenic and beautiful that country has to offer. It is surrounded by a landscape of deserts, plateaus, canyons and mountains punctuated by rivers and forests.
That makes it a popular place for people to visit, and ensures that tourism is an important part of its economy. Alongside these landscapes, Colorado also houses cities like Denver, where the Broncos NFL team is based.
Until recently, the state was one of the main headquarters for the social media platform Twitter too, before the company closed its offices there. An important state then: but is it a thriving one?
Colorado has been known for economic growth in recent times, but can it maintain that in the face of wider US economic troubles?
There are a number of key industries that have been at the heart of the economic boom in Colorado in the past few years.
Sports and Betting
The state is home to a number of major professional sports teams that boost its economic performance. Alongside the Denver Broncos in the NFL, it also has the Denver Nuggets NBA team and the Colorado Rockies in the MLB.
Sport is big business around the globe and thus Colorado has benefited from fans of these teams in other parts of the world travelling there to watch the games. Its economy also gains as a result of fans of rival teams visiting when their sides play in Colorado.
It is not just a matter of watching sports either. Colorado is one of the US states that has legalized all forms of sports betting. It was the 19th state in the country to do so when the legislation was passed three years ago and it has given the economy a giant shot in the arm.
Gross profit from betting on sports throughout the state is calculated at $817,032,484 so far. Much of that is from online betting, with millions taking advantage of Colorado sports betting promos to get the biggest bang from their buck.
Betting on sports has brought in tax revenues totaling $43,798,433 for the state up to now. Clearly legalizing it has been absolutely crucial to the boom Colorado has enjoyed.
Tourism
The availability of legal sports betting in Colorado is linked to another key area of its economy: the tourism sector. After all, this activity is not allowed in all US states – a significant number of them still outlaw it.
That means people from states where it remains banned visit Colorado so that they can enjoy wagering on sports events as much as watching them. There is no question that tourism is of vital importance to the economy of the state, but it is just as much tourism from within the US as from outside it.
The tourist appeal of Colorado for fans of sports betting may wane as more states seek to liberalize gaming laws, but the landscape will continue to attract visitors.
Agriculture
The last big plank of the Colorado economy has been agriculture, which is particularly crucial to its rural areas. However, it has been impacted by factors like a lengthy drought and the Ukraine war that have led to calls for water reallocation schemes.
Can Economic Growth be Maintained?
Recent forecasting for the state’s economy by the Colorado Futures Center suggests ongoing growth at a slower rate than in recent years. If those predictions prove to be correct, it will mean that it avoids the recession that much of the rest of the US is facing.
Figures show that growth surpassed expectations for the spring period and that a slight upwards curve is likely for the remainder of the year. Much of that is down to factors such as a drop in inflation and rises in house prices across the state.
Although the agricultural segment of the Colorado economy has been damaged by external factors, the ongoing enthusiasm for sports and sports betting makes them reliable economic contributors. With the state’s employment rates still robust, there is less likelihood that people will need to cut back significantly on leisure pursuits like betting on sports – especially with inflation now also starting to ease.
The economy in Colorado did contract slightly at the start of the year, but that was something that had been expected and it had begun to grow again by March. The housing market recovery has been quicker than anticipated, leading to a widespread feeling that the Colorado economic outlook is one of moderate growth for the foreseeable future.
Colorado is a state that benefits from a varied economy, with several industries contributing to its revenues, including legal betting on sports. That makes it better positioned than some other states to weather tough national conditions.
